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Monday, 5 December 2011

CASE 367 - Shanghai Cooperation Organisation

The Shanghai Cooperation Organisation or SCO, is an intergovernmental mutual-security organisation which was founded in 2001 in Shanghai by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Except for Uzbekistan, the other countries had been members of the Shanghai Five, founded in 1996; after the inclusion of Uzbekistan in 2001, the members renamed the organisation.

Origins

The Shanghai Five grouping was originally created April 26, 1996 with the signing of the Treaty on Deepening Military Trust in Border Regions in Shanghai by the heads of states of Kazakhstan, the People's Republic of China, Kyrgyzstan, Russia and Tajikistan. April 24, 1997 the same countries signed the Treaty on Reduction of Military Forces in Border Regions in a meeting in Moscow.

Former Russian President Vladimir Putin, Kazakh President Nursultan Nazarbayev, Former Chinese President Jiang Zemin, Former Kyrgyz President Askar Akayev, and Tajik President Emomali Rakhmonov, at one time the leaders of the Shanghai Five.Subsequent annual summits of the Shanghai Five group occurred in Almaty (Kazakhstan) in 1998, in Bishkek (Kyrgyzstan) in 1999, and in Dushanbe (Tajikistan) in 2000.In 2001, the annual summit returned to Shanghai, China. There the five member nations first admitted Uzbekistan in the Shanghai Five mechanism (thus transforming it into the Shanghai Six). Then all six heads of state signed on June 15, 2001, the Declaration of Shanghai Cooperation Organisation, praising the role played thus far by the Shanghai Five mechanism and aiming to transform it to a higher level of cooperation. In July 2001, Russia and the PRC, the organisation's two leading nations, signed the Treaty of Good-Neighbourliness and Friendly Cooperation. In June 2002, the heads of the SCO member states met in Saint Petersburg, Russia. There they signed the SCO Charter which expounded on the organisation's purposes, principles, structures and form of operation, and established it officially from the point of view of international law.Its six full members account for 60% of the land mass of Eurasia and its population is a quarter of the world’s. With observer states included, its affiliates account for half of the human race.In June 2005, at its fifth and watershed summit in Astana, Kazakhstan, with representatives of India, Iran, Mongolia and Pakistan attending an SCO summit for the first time, the president of the host country, Nursultan Nazarbayev, greeted the guests in words that had never before been used in any context: “The leaders of the states sitting at this negotiation table are representatives of half of humanity.” By 2007 the SCO had initiated over twenty large-scale projects related to transportation, energy and telecommunications and held regular meetings of security, military, defence, foreign affairs, economic, cultural, banking and other officials from its member states. The SCO has now established relations with the United Nations, where it is an observer in the General Assembly, the European Union, ASEAN (Association of Southeast Asian Nations), the Commonwealth of Independent States and the Organisation of Islamic Cooperation.

Over the past few years, the organisation's activities have expanded to include increased military cooperation, intelligence sharing, and counterterrorism.

There have been a number of SCO joint military exercises. The first of these was held in 2003, with the first phase taking place in Kazakhstan and the second in China. Since then China and Russia have teamed up for large-scale war games in 2005 (Peace Mission 2005), 2007 and 2009, under the auspices of the Shanghai Cooperation Organisation. At the joint military exercises in 2007 (known as "Peace Mission 2007") which took place in Chelyabinsk Russia, near the Ural Mountains and close to Central Asia, as was agreed upon in April 2006 at a meeting of SCO Defence Ministers, more than 4,000 Chinese soldiers participated. Air forces and precision-guided weapons were also likely to be used. Russian Defence Minister Sergei Ivanov said that the exercises would be transparent and open to media and the public. Following the war games' successful completion, Russian officials began speaking of India joining such exercises in the future and the SCO taking on a military role. Peace Mission 2010, conducted September 9–25 at Kazakhstan's Matybulak training area, saw over 5,000 personnel from China, Russia, Kazakhstan, Kyrgyzstan and Tajikistan conduct joint planning and operational maneuvers.The SCO has served as a platform for larger military announcements by members. During the 2007 war games in Russia, with leaders of SCO member states in attendance including Chinese President Hu Jintao, Russia's Prime Minister Vladimir Putin used the occasion to take advantage of a "captive" audience: Russian strategic bombers, he said, would resume regular long-range patrols for the first time since the Cold War. "Starting today, such tours of duty will be conducted regularly and on the strategic scale," Putin said. "Our pilots have been grounded for too long. They are happy to start a new life."[edit]Economic cooperation All SCO members but China are also members of the Eurasian Economic Community. A Framework Agreement to enhance economic cooperation was signed by the SCO member states on September 23, 2003. At the same meeting the PRC's Premier, Wen Jiabao, proposed a long-term objective to establish a free trade area in the SCO, while other more immediate measures would be taken to improve the flow of goods in the region. A follow up plan with 100 specific actions was signed one year later, on September 23, 2004.

Leaders present at the SCO summit in Yekaterinburg, Russia in 2009.

On October 26, 2005, during the Moscow Summit of the SCO, the Secretary General of the Organisation said that the SCO will prioritise joint energy projects; such will include the oil and gas sector, the exploration of new hydrocarbon reserves, and joint use of water resources. The creation of an Inter-bank SCO Council was also agreed upon at that summit in order to fund future joint projects. The first meeting of the SCO Interbank Association was held in Beijing on February 21–22, 2006. On November 30, 2006, at The SCO: Results and Perspectives, an international conference held in Almaty, the representative of the Russian Foreign Ministry announced that Russia is developing plans for an SCO "Energy Club". The need for this "club" was reiterated by Moscow at an SCO summit in November 2007. Other SCO members, however, have not committed themselves to the idea. However on August 28, 2008 summit it was stated that "Against the backdrop of a slowdown in the growth of world economy pursuing a responsible currency and financial policy, control over the capital flowing, ensuring food and energy security have been gaining special significance." On June 16, 2009, at the Yekaterinburg Summit, China announced plans to provide a US$10 billion loan to SCO member states to shore up the struggling economies of its members amid the global financial crisis. The summit was held together with the first BRIC summit, and the China-Russia joint statement said that they want a bigger quota in the International Monetary Fund.

At the 2007 SCO summit Iranian Vice President Parviz Davudi addressed an initiative that has been garnering greater interest and assuming a heightened sense of urgency when he said, “The Shanghai Cooperation Organisation is a good venue for designing a new banking system which is independent from international banking systems.” The address by Russia’s Putin also included these comments: “We now clearly see the defectiveness of the monopoly in world finance and the policy of economic selfishness. To solve the current problem Russia will take part in changing the global financial structure so that it will be able to guarantee stability and prosperity in the world and to ensure progress.”“The world is seeing the emergence of a qualitatively different geo-political situation, with the emergence of new centers of economic growth and political influence.“We will witness and take part in the transformation of the global and regional security and development architectures adapted to new realities of the 21st century, when stability and prosperity are becoming inseparable notions.” [edit]Cultural cooperationCultural cooperation also occurs in the SCO framework. Culture ministers of the SCO met for the first time in Beijing on April 12, 2002, signing a joint statement for continued cooperation. The third meeting of the Culture Ministers took place in Tashkent, Uzbekistan, on April 27–28, 2006.[An SCO Arts Festival and Exhibition was held for the first time during the Astana Summit in 2005. Kazakhstan has also suggested an SCO folk dance festival to take place in 2008, in Astana.